The rising costs of gasoline and shelter accounted for more than half of overall inflation in March. Consumer price inflation has stayed above 3% for nine months in a row after falling in the previous twelve months in a row, proving it harder to bring it down to 2%.
The number of job openings, hires, and separations changed little for the third month in a row in February. Job openings are sharply lower than two years ago after peaking at 12.2 million in March 2022.
New orders for durable goods rose in February, and critically important non-defense capital goods orders excluding aircraft rebounded after falling in the previous month.
Single-family home sales in February eased from the previous month but rose from a year ago. The average and median home prices declined from the previous month and fell below the price for 2023.
The Federal Reserve left its target interest rate unchanged and reiterated the possibility of as many as three rate cuts in the remainder of the year. Policymakers also lifted their estimate of economic growth in the current year sharply.
Housing construction activities picked up in February as home buyers turned to purchasing new homes amid low inventories and home affordability issues.
The measure of wholesale price inflation accelerated in February, driven in large part by the higher cost of energy, which accelerated goods price inflation.
U.S. retail and food services sales rebounded from the previous month in February, but a price -unadjusted measure showed consumers are still sticking to basics and avoiding high priced discretionary items.
U.S. international goods and trade deficits widened after exports held steady and imports advanced because of the higher price of energy. Deficits with China, Japan, and the European Union expanded.
Producer price inflation rose at the fastest pace in five months in January, due to an increase in the cost of services. Core inflation rose at the fastest pace in a year.
Retail and food services sales in January fell reversing the gains in December, the largest decrease in sales since March last year. Sales of motor vehicles and parts and at gas stations were among the leading decliners.
Elevated shelter and food price inflation kept overall consumer price inflation ahead of market expectations. Core inflation was stable and stayed significantly ahead of the Fed's target rate.
